The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-12-09
NECESSITY FOR ECONOMY
Why the City Council Finance Commit
tee Fears that There May Be Deficit.
The New Assessment of Property Reduces the
City's Revenue $40. 0O0-Mayor Denny
Will Suggest Tax on Vehicles

At the meeting of the Council Monday even
ing there came up the periodical discussion on
the habit of passing minor propositions involv-
ing expenditures without referring them to ap-
propriate committees. Councilman Thalman.
in obiectng to this mode of procedure said
that anything, no matter how small, contem-
plating the use of the city's money should just
at this time be carefully considered, as the
municipal finances were not in the best possible
shape. and that there great danger of q def
cit at the end of the year Very much of this kind
of talk was INDUCED in about this time last
winter, and yet the city came out $23, 600 ahead
During the last year there has been no increase
in the bo nded Indebtedness. and cannot be. for
that is now up to the statutory limit But this
class of indebtedness created in flush times en-
forced upon the city the payment of high rate
of interest, averaging7 per cent. 1t amounts
to 81. 400, 600, exclusive of the 100000 in Belt
railroad bonds, and the yearly interest reaches
nearly 500, 600. Some time ago it was thought
that the debt could be refunded before
maturity per cent, but the
Eastern holders of the bonds would not consent
to it. They said they would hold out for the
and rs per cent. until the bonds matured the
first series Of which (the I. g. V. and junction
railroad bonds), for $4,000, at 6 per cent, is
due Jan. 1, 1880 Until that date the city can
do nothing towards refunding. In 1873 the
spirit of street and other public improvements
abroad, and caused the creation of a bonded
Indebtedness of 5000, 900 at 7.3 per cent, which
is the next series reach maturity, July1.
1893 After this come the bonds for the pur
chase of the Sellers farm at like rate of interest
They due Jan. l. 1894, and six months later
$780, 900 at 7.3 per cent natures. In the year
following 900 more will fall due at the
same rate of interest But in the mean time,
Jan. l. 1894, the Garfield Park bonds, 100000,
will have to be paid The Belt railroad, per
cent bonds. do not mature until July l, 1897.
There are several smaller issues of longtime
bonds. on which high interest is being paid. All
this Indebtedness, except the Belt railroad
bonds, was created previous to July l. 1879 In
addition to this the city is carrying 100000
temporary loan at per cent which was made
two years ago, and has been continued from
time to time as it matured.
During the past year there has been no in
crease in expenses, but on the other hand two
items of Importance have been dropped from
the list of expenditures-the Tomlinson Hall
and market house improvements. They have
been paid for and the revenues they drew on
have been applied to current purposes Yet the
Council finance committee says that the reduc-
ton In property valuation has offset this by de-
priving the city treasury of $40, 900 per year.
If the interest the bonded indie btedness could
be reduced, the committee thinks every thing
would be satisfactory for carrying the city
through without fear of deficit or imposing any
restrictive economy in making important
department. suffer at the expense OF another. In
this way it is claimed that the street improve
ment and repair funds nave been made to bear
a sacrifice in order to keep up departments that
might have shared the burden of retrenchment
In 1875 the street i'm provements and repairs cost
$155, 900, but they have been gradually cut down
until the expenditures this year for these
poses will not amount to much more than
$50. 900.
In his forthcoming message the Mayor will re-
view very thoroughly the citv's financial condi
ton, which, he says, could be materially i'm
proved il a vehicle tax available. He will
make no recommendations but let the facts 60
to the people for their own consideration and
judgment. With taxable valuation which has
been decreased from SCI, 100000 when the En-
glish law passed, to SAT 600 900, it is the
opinion of some of the citys fnanciers that the
limit of taxation should be increased. Another
suggestion is that high liquor license should be
created by the next Legislature, which would
give the city additional yearly revenue of at
least SCI, 900 from that source